New risk adviser numbers to drop, says ClearView

Very few new risk specialist advisers will enter the industry as a result of the Life Insurance Framework reforms, ClearView managing director Simon Swanson says.

Speaking to ifa, Mr Swanson said he believes that existing risk advisers "will survive" the reforms, but that the same cannot be said for new specialist advisers wanting to enter the sector.

"There won't be that many new [specialist advisers] and they will be more holistic as they enter the industry," Mr Swanson said.

He added that he has been discussing the viability of their businesses with risk advisers licensed through ClearView.

"We have been very clear and transparent that we understand people will need, in some cases, bridging finance to actually establish themselves properly," Mr Swanson said.

This is because the cost of providing advice will be more than the remuneration advisers will earn in the first year, he explained.

Despite concerns expressed by many risk specialist advisers, Mr Swanson said he does not expect advisers licensed through ClearView to close their businesses and move on.

In fact, many advisers, in the future, will look towards the superannuation sector of the financial services industry as a means to boost their business, he said.

"The convergence of life insurance and superannuation sectors is certainly on the way – like it used to be together back in the 1980s and before that – and that [will be part of] our strategy," he said.

"There have been a lot of efficiencies made on the investment side around model portfolios which make the giving of advice around superannuation a lot easier than it used to be."